(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: | ||||||||||||
(d) | List of Exhibits: | |||||||
99.1 | Press Release dated November 18, 2021 titled Williams-Sonoma, Inc. announces record third quarter results; Q3 revenues grow 16.0% with comparable brand revenue growth of 16.9%, accelerating 2YR comp of 41.3%; Q3 GAAP operating margin of 16.1%; Q3 Non-GAAP operating margin expansion of 60bps to 16.3%; Q3 GAAP diluted EPS of $3.29; Q3 Non-GAAP diluted EPS of $3.32, increasing 30%; Raises full-year 2021 outlook. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
WILLIAMS-SONOMA, INC. | ||||||||
Date: November 18, 2021 | By: | /s/ Julie Whalen | ||||||
Julie Whalen | ||||||||
Chief Financial Officer |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | ||||||||||||||||||||||||||||||||||||||||||||||
October 31, 2021 | November 1, 2020 | October 31, 2021 | November 1, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
In thousands, except per share amounts | $ | % of Revenues | $ | % of Revenues | $ | % of Revenues | $ | % of Revenues | |||||||||||||||||||||||||||||||||||||||
Net revenues | $ | 2,047,539 | 100 | % | $ | 1,764,536 | 100 | % | $ | 5,744,907 | 100 | % | $ | 4,490,516 | 100 | % | |||||||||||||||||||||||||||||||
Cost of goods sold | 1,152,054 | 56.3 | 1,058,953 | 60.0 | 3,238,181 | 56.4 | 2,819,471 | 62.8 | |||||||||||||||||||||||||||||||||||||||
Gross profit | 895,485 | 43.7 | 705,583 | 40.0 | 2,506,726 | 43.6 | 1,671,045 | 37.2 | |||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 565,218 | 27.6 | 430,979 | 24.4 | 1,578,182 | 27.5 | 1,162,435 | 25.9 | |||||||||||||||||||||||||||||||||||||||
Operating income | 330,267 | 16.1 | 274,604 | 15.6 | 928,544 | 16.2 | 508,610 | 11.3 | |||||||||||||||||||||||||||||||||||||||
Interest (income) expense, net | 121 | — | 5,344 | 0.3 | 1,954 | — | 13,967 | 0.3 | |||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | 330,146 | 16.1 | 269,260 | 15.3 | 926,590 | 16.1 | 494,643 | 11.0 | |||||||||||||||||||||||||||||||||||||||
Income taxes | 80,622 | 3.9 | 67,488 | 3.8 | 203,194 | 3.5 | 122,884 | 2.7 | |||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 249,524 | 12.2 | % | $ | 201,772 | 11.4 | % | $ | 723,396 | 12.6 | % | $ | 371,759 | 8.3 | % | |||||||||||||||||||||||||||||||
Earnings per share (EPS): | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 3.37 | $ | 2.60 | $ | 9.66 | $ | 4.80 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 3.29 | $ | 2.54 | $ | 9.40 | $ | 4.71 | |||||||||||||||||||||||||||||||||||||||
Shares used in calculation of EPS: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 74,010 | 77,487 | 74,865 | 77,511 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | 75,943 | 79,332 | 76,975 | 79,012 |
3rd Quarter Net Revenues and Comparable Brand Revenue Growth by Concept* | ||||||||||||||||||||
Net Revenues (Millions) | Comparable Brand Revenue Growth | |||||||||||||||||||
Q3 21 | Q3 20 | Q3 21 | Q3 20 | |||||||||||||||||
Pottery Barn | $ | 789 | $ | 684 | 15.9 | % | 24.1 | % | ||||||||||||
West Elm | 580 | 475 | 22.5 | 21.8 | ||||||||||||||||
Williams Sonoma | 272 | 260 | 7.6 | 30.4 | ||||||||||||||||
Pottery Barn Kids and Teen | 316 | 278 | 16.9 | 23.8 | ||||||||||||||||
Other** | 91 | 68 | N/A | N/A | ||||||||||||||||
Total | $ | 2,048 | $ | 1,765 | 16.9 | % | 24.4 | % | ||||||||||||
* See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 13-week to 13-week basis for Q3 2021 and Q3 2020. Comparable stores that were temporarily closed due to COVID-19 were not excluded from the comparable stores calculation. ** Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham. |
In thousands, except per share amounts | October 31, 2021 | January 31, 2021 | November 1, 2020 | ||||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 656,898 | $ | 1,200,337 | $ | 773,170 | |||||||||||
Accounts receivable, net | 139,511 | 143,728 | 129,782 | ||||||||||||||
Merchandise inventories, net | 1,272,028 | 1,006,299 | 1,125,475 | ||||||||||||||
Prepaid expenses | 85,433 | 93,822 | 84,974 | ||||||||||||||
Other current assets | 22,852 | 22,894 | 23,556 | ||||||||||||||
Total current assets | 2,176,722 | 2,467,080 | 2,136,957 | ||||||||||||||
Property and equipment, net | 892,226 | 873,894 | 869,092 | ||||||||||||||
Operating lease right-of-use assets | 1,159,315 | 1,086,009 | 1,091,649 | ||||||||||||||
Deferred income taxes, net | 61,768 | 61,854 | 42,185 | ||||||||||||||
Goodwill | 85,392 | 85,446 | 85,402 | ||||||||||||||
Other long-term assets, net | 101,901 | 87,141 | 85,394 | ||||||||||||||
Total assets | $ | 4,477,324 | $ | 4,661,424 | $ | 4,310,679 | |||||||||||
Liabilities and stockholders' equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 638,371 | $ | 542,992 | $ | 562,294 | |||||||||||
Accrued expenses | 273,722 | 267,592 | 194,985 | ||||||||||||||
Gift card and other deferred revenue | 431,446 | 373,164 | 349,671 | ||||||||||||||
Income taxes payable | 38,320 | 69,476 | 36,037 | ||||||||||||||
Current debt | — | 299,350 | — | ||||||||||||||
Operating lease liabilities | 218,348 | 209,754 | 217,448 | ||||||||||||||
Other current liabilities | 91,418 | 85,672 | 99,691 | ||||||||||||||
Total current liabilities | 1,691,625 | 1,848,000 | 1,460,126 | ||||||||||||||
Deferred lease incentives | 17,268 | 20,612 | 21,858 | ||||||||||||||
Long-term debt | — | — | 299,173 | ||||||||||||||
Long-term operating lease liabilities | 1,095,290 | 1,025,057 | 1,027,142 | ||||||||||||||
Other long-term liabilities | 129,771 | 116,570 | 100,478 | ||||||||||||||
Total liabilities | 2,933,954 | 3,010,239 | 2,908,777 | ||||||||||||||
Stockholders' equity | |||||||||||||||||
Preferred stock: $0.01 par value; 7,500 shares authorized, none issued | — | — | — | ||||||||||||||
Common stock: $0.01 par value; 253,125 shares authorized; 73,326, 76,340, and 76,697 shares issued and outstanding at October 31, 2021, January 31, 2021 and November 1, 2020, respectively | 734 | 764 | 768 | ||||||||||||||
Additional paid-in capital | 585,449 | 638,375 | 623,379 | ||||||||||||||
Retained earnings | 963,840 | 1,019,762 | 792,196 | ||||||||||||||
Accumulated other comprehensive loss | (5,942) | (7,117) | (13,843) | ||||||||||||||
Treasury stock, at cost | (711) | (599) | (598) | ||||||||||||||
Total stockholders' equity | 1,543,370 | 1,651,185 | 1,401,902 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 4,477,324 | $ | 4,661,424 | $ | 4,310,679 | |||||||||||
Retail Store Data (unaudited) | |||||||||||||||||||||||
August 1, 2021 | Openings | Closings | October 31, 2021 | November 1, 2020 | |||||||||||||||||||
Williams Sonoma | 196 | — | (2) | 194 | 210 | ||||||||||||||||||
Pottery Barn | 195 | — | — | 195 | 201 | ||||||||||||||||||
West Elm | 123 | 1 | (3) | 121 | 122 | ||||||||||||||||||
Pottery Barn Kids | 57 | — | — | 57 | 71 | ||||||||||||||||||
Rejuvenation | 10 | — | — | 10 | 10 | ||||||||||||||||||
Total | 581 | 1 | (5) | 577 | 614 | ||||||||||||||||||
Thirty-nine Weeks Ended | |||||||||||
In thousands | October 31, 2021 | November 1, 2020 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 723,396 | $ | 371,759 | |||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 145,897 | 140,340 | |||||||||
Loss on disposal/impairment of assets | 887 | 26,220 | |||||||||
Amortization of deferred lease incentives | (3,345) | (4,538) | |||||||||
Non-cash lease expense | 159,757 | 162,767 | |||||||||
Deferred income taxes | (11,440) | (6,969) | |||||||||
Tax benefit related to stock-based awards | 10,838 | 13,143 | |||||||||
Stock-based compensation expense | 70,566 | 54,671 | |||||||||
Other | 4 | (9) | |||||||||
Changes in: | |||||||||||
Accounts receivable | 4,941 | (18,017) | |||||||||
Merchandise inventories | (264,094) | (22,990) | |||||||||
Prepaid expenses and other assets | (10,078) | (4,807) | |||||||||
Accounts payable | 74,181 | 54,279 | |||||||||
Accrued expenses and other liabilities | 24,400 | 58,539 | |||||||||
Gift card and other deferred revenue | 58,189 | 59,953 | |||||||||
Operating lease liabilities | (164,569) | (171,245) | |||||||||
Income taxes payable | (31,191) | 13,532 | |||||||||
Net cash provided by operating activities | 788,339 | 726,628 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (141,010) | (124,885) | |||||||||
Other | 97 | 506 | |||||||||
Net cash used in investing activities | (140,913) | (124,379) | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of common stock | (652,699) | (109,048) | |||||||||
Repayment of long-term debt | (300,000) | — | |||||||||
Payment of dividends | (135,201) | (116,761) | |||||||||
Tax withholdings related to stock-based awards | (102,482) | (30,555) | |||||||||
Debt issuance costs | (777) | (3,645) | |||||||||
Borrowings under revolving line of credit | — | 487,823 | |||||||||
Repayments under the revolving line of credit | — | (487,823) | |||||||||
Net cash used in financing activities | (1,191,159) | (260,009) | |||||||||
Effect of exchange rates on cash and cash equivalents | 294 | (1,232) | |||||||||
Net (decrease) increase in cash and cash equivalents | (543,439) | 341,008 | |||||||||
Cash and cash equivalents at beginning of period | 1,200,337 | 432,162 | |||||||||
Cash and cash equivalents at end of period | $ | 656,898 | $ | 773,170 |
3rd Quarter GAAP to Non-GAAP Reconciliation (unaudited) | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | ||||||||||||||||||||||||||||||||||||||||
October 31, 2021 | November 1, 2020 | October 31, 2021 | November 1, 2020 | ||||||||||||||||||||||||||||||||||||||
$ | % of revenues | $ | % of revenues | $ | % of revenues | $ | % of revenues | ||||||||||||||||||||||||||||||||||
Gross profit | $ | 895,485 | 43.7 | % | $ | 705,583 | 40.0 | % | $ | 2,506,726 | 43.6 | % | $ | 1,671,045 | 37.2 | % | |||||||||||||||||||||||||
Inventory write-off 1 | — | — | — | 11,378 | |||||||||||||||||||||||||||||||||||||
Non-GAAP gross profit | $ | 895,485 | 43.7 | % | $ | 705,583 | 40.0 | % | $ | 2,506,726 | 43.6 | % | $ | 1,682,423 | 37.5 | % | |||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 565,218 | 27.6 | % | $ | 430,979 | 24.4 | % | $ | 1,578,182 | 27.5 | % | $ | 1,162,435 | 25.9 | % | |||||||||||||||||||||||||
Outward-related2 | (2,752) | (2,219) | (8,348) | (8,918) | |||||||||||||||||||||||||||||||||||||
Asset impairment 3 | — | — | — | (21,975) | |||||||||||||||||||||||||||||||||||||
Non-GAAP selling, general and administrative expenses | $ | 562,466 | 27.5 | % | $ | 428,760 | 24.3 | % | $ | 1,569,834 | 27.3 | % | $ | 1,131,542 | 25.2 | % | |||||||||||||||||||||||||
Operating income | $ | 330,267 | 16.1 | % | $ | 274,604 | 15.6 | % | $ | 928,544 | 16.2 | % | $ | 508,610 | 11.3 | % | |||||||||||||||||||||||||
Outward-related2 | 2,752 | 2,219 | 8,348 | 8,918 | |||||||||||||||||||||||||||||||||||||
Inventory write-off 1 | — | — | — | 11,378 | |||||||||||||||||||||||||||||||||||||
Asset impairment 3 | — | — | — | 21,975 | |||||||||||||||||||||||||||||||||||||
Non-GAAP operating income | $ | 333,019 | 16.3 | % | $ | 276,823 | 15.7 | % | $ | 936,892 | 16.3 | % | $ | 550,881 | 12.3 | % | |||||||||||||||||||||||||
$ | Tax rate | $ | Tax rate | $ | Tax rate | $ | Tax rate | ||||||||||||||||||||||||||||||||||
Income taxes | $ | 80,622 | 24.4 | % | $ | 67,488 | 25.1 | % | $ | 203,194 | 21.9 | % | $ | 122,884 | 24.8 | % | |||||||||||||||||||||||||
Outward-related2 | 473 | 473 | 1,446 | 1,665 | |||||||||||||||||||||||||||||||||||||
Inventory write-off 1 | — | — | — | 2,940 | |||||||||||||||||||||||||||||||||||||
Asset impairment3 | — | — | — | 5,324 | |||||||||||||||||||||||||||||||||||||
Deferred tax liability adjustment4 | — | 647 | — | 647 | |||||||||||||||||||||||||||||||||||||
Non-GAAP income taxes | $ | 81,095 | 24.4 | % | $ | 68,608 | 25.3 | % | $ | 204,640 | 21.9 | % | $ | 133,460 | 24.9 | % | |||||||||||||||||||||||||
Diluted EPS | $ | 3.29 | $ | 2.54 | $ | 9.40 | $ | 4.71 | |||||||||||||||||||||||||||||||||
Outward-related2 | 0.03 | 0.02 | 0.09 | 0.09 | |||||||||||||||||||||||||||||||||||||
Inventory write-off1 | — | — | — | 0.11 | |||||||||||||||||||||||||||||||||||||
Asset impairment3 | — | — | — | 0.21 | |||||||||||||||||||||||||||||||||||||
Deferred tax liability adjustment4 | — | (0.01) | — | (0.01) | |||||||||||||||||||||||||||||||||||||
Non-GAAP diluted EPS* | $ | 3.32 | $ | 2.56 | $ | 9.49 | $ | 5.11 | |||||||||||||||||||||||||||||||||
*Per share amounts may not sum due to rounding to the nearest cent per diluted share |
Cover |
Nov. 18, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 18, 2021 |
Entity Registrant Name | Williams-Sonoma, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-14077 |
Entity Tax Identification Number | 94-2203880 |
Entity Address, Address Line One | 3250 Van Ness Avenue |
Entity Address, City or Town | San Francisco |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94109 |
City Area Code | 415 |
Local Phone Number | 421-7900 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $.01 per share |
Trading Symbol | WSM |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0000719955 |
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